Willingness to Pay for Good Quality, Uninterrupted Power Supply in Madhya Pradesh, India
Gunatilake, Herath; Maddipati, Narasimhamurty; Patail, Sumeet | November 2012
Abstract
"This study undertakes a contingent valuation survey using a stratified random sample of 2083 households in rural Madhya Pradesh, India, with the objective of estimating the benefits of an improved electricity supply to rural households. Willingness to Pay (WTP)estimates using a bidding game and dichotomous choice elicitations formats, show that benefits adequately justify the investments on feeder separation and rural electricity service improvements. Results of this study support similar investments in other states in India with similar electricity services and socio-economic characteristics. The estimated income elasticity of WTP indicates the possibility of progressive tariff increases as household income increases. Simulations using the estimated WTP function show that block and flat tariff exhibit similar impacts on revenue generation; however block tariffs have the ability to induce energy conservation at the household level. Although not entirely conclusive, the study casts doubts about the rationale for subsidies for the poorest households. "
Citation
Gunatilake, Herath; Maddipati, Narasimhamurty; Patail, Sumeet. 2012. Willingness to Pay for Good Quality, Uninterrupted Power Supply in Madhya Pradesh, India. © Asian Development Bank. http://hdl.handle.net/11540/1266. License: CC BY 3.0 IGO.Keywords
Alleviating Poverty
Anti-Poverty
Extreme Poverty
Fight Against Poverty
Global Poverty
Health Aspects Of Poverty
Indicators Of Poverty
Participatory Poverty Assessment
Poverty Eradication
Poverty Analysis
Poverty In Developing Countries
Poverty Reduction Efforts
Urban Poverty
Urbanization
Urban Services
Urban Projects
Urban Problems
Urban Poverty
Urban Policy
Urban Planning
Urban Infrastructure
Urban Health
Urban Government
Urban Economic Development
Urban Development Finance
Urban Development
Urban Conditions
Urban Communities
Urban Population
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Disadvantaged Groups
Low Income Groups
Socially Disadvantaged Children
Rural Conditions
Rural Development
Social Conditions
Urban Development
Urban Sociology
Urban Plans
Urbanism
Urban agriculture
Economic Development
Rural Urban Migration
Cities
Poor
Economic forecasting
Health expectancy
Social groups
Political participation
Distribution of income
Inequality of income
Developing countries
Rural community development
Mass society
Social change
Social policy
Social stability
Population
Sustainable development
Peasantry
Urban policy
Urban renewal
Local government
Urban renewal
Urban housing
Urban sociology
Transit systems
Rapid transit
Public transit
Mass transit
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